UPDATE: Oppenheimer Upgrades OSI Systems to Outperform on Valuation

Oppenheimer raised its rating on OSI Systems OSIS from Perform to Outperform with a $72 price target. Oppenheimer noted, "When we initiated coverage of OSI in Sept. (on 9/4 at $74.10), we highlighted its impressive roster of growth opportunities. The one factor giving us pause was OSI's lofty valuation, an impediment that receded with yesterday's sell-off. As for the catalyst behind OSI's retrenchment, we think it's exceedingly overdone: a case of a fairly ordinary kerfuffle between OSI and TSA getting recast as a federal offense by a House subcommittee apparently intent on elevating TSA's minute operational issues into national news. We're growing convinced this is a tempest in a teapot, and that the issues between OSI and TSA will be resolved without a material impact to business fundamentals." OSI Systems closed at $54.89 on Thursday.